Meta vs Snap: Financial Performance Comparison
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 hours ago
0mins
Source: NASDAQ.COM
- Revenue Growth Comparison: Meta has achieved consistent quarter-over-quarter revenue growth over the past eight quarters, reporting $56.3 billion in Q1 with a 33% year-over-year increase, while Snap's revenue of $1.5 billion only grew by 12%, highlighting a significant disparity in revenue growth between the two companies.
- Net Income Margin Discrepancy: Meta reported a net income margin of 48% for Q1 2026, contrasting sharply with Snap's -6%, indicating that Meta far exceeds Snap in profitability, which has yet to achieve profitability since its IPO in 2017.
- Capital Expenditure Plans: Meta plans to increase capital expenditures to as high as $145 billion in 2026, which has contributed to a decline in its stock price; however, the company believes that investments in AI will drive future revenue growth, while Snap's limited capacity for AI investment may hinder its sales growth.
- Market Outlook Analysis: Despite a decline in Meta's stock price due to high spending, its ongoing investments in AI are seen as crucial for long-term growth, whereas Snap's profitability struggles and relative market share decline may place it at a competitive disadvantage.
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Analyst Views on META
Wall Street analysts forecast META stock price to rise
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 542.870
Low
655.15
Averages
824.71
High
1117
Current: 542.870
Low
655.15
Averages
824.71
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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